The Income Tax Return (ITR) filing deadline for the financial year 2019-20 (assessment 2020-21) ends on November 30, 2020. Income Tax Department has notified 7 forms for filing ITR this year. These forms include Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6 and Form ITR-7.

Among these, ITR 3 can be used by an individual or a HUF if he/she has income from business or profession. Return in ITR 3 cannot be filed by any person other than an individual or a HUF.

Also read: How to use ITR-1 form

On the other hand, return in ITR 4 (Sugam) can be filed by an individual or HUF or firm (other than an LLP) if his/her total income includes:

1. Presumptive Income computed as per provisions of Sections 44AD, Section 44ADA or Section 44AE
2. Salary or pension
3. Income or loss from one house property (excluding brought forward losses and losses to be carried forward)
4. Family pension
5. Income from other sources (other than income chargeable to tax at special rates)

If the income of another person (spouse, minor child, etc.) is to be clubbed with the income of an assessee, return in ITR 4 can be filed only when the income of such person falls in any of the above categories, according to Taxmann.

Also read: Looking to file ITR for free? You can try these platforms

However, if tax has been deducted in the name of such other person and assessee wants to claim its credit, then he/she cannot file return in ITR-4, Taxmann mentioned.

Also, return in ITR 4 (Sugam) cannot be filed by an assessee, as per Taxmann:

1. Who is a non-resident or not ordinarily resident
2. Who is a director of a company
3. Whose total income exceeds Rs 50 lakh
4. Who has income from more than 1 house property
5. Who has held unlisted equity shares at any time during the previous year
6. Who claims deduction under section 80QQB or 80RRB in respect of royalty from patent or books
7. Who claims deduction under section 10AA or Part-C of Chapter VI-A
8. Who has brought forward loss or losses to be carried forward under any head
9. Who wants to claim relief under Sections 90 or 91
10. Who has any assets (including financial Interest in an entity) located outside India
11. Who has signing authority in any account outside India
12. Who has any income to be apportioned in accordance with provisions of Section 5A
13. Who has any of the following income:

a) Income from business or profession

b) Capital gains or loss

c) Income taxable under the head ‘Other sources’ which is taxable at a special rate

d) Dividend income exceeding Rs 10 lakh taxable under Section 115BBDA

e) Unexplained income (i.e., cash credit, unexplained investment, etc.) taxable at 60 percent under Section 115BBE

f) Agricultural Income exceeding Rs. 5,000

g) Person claiming deduction under Section 57 from income taxable under the head ‘Other Sources’ (other than deduction allowed from the family pension)

h) Income from any source outside India

i) Income from speculative business and other special incomes.

j) Income from agency business or commission or brokerage

If assessee is eligible for presumptive tax scheme of section 44AD or Section 44AE, or section 44ADA but he/she does not opt for the same, then he/she shall maintain books of account and get them audited. Thus, the assessee has to file ITR-3 instead of ITR-4 in such a case.